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Compare the Market economic director David Koch has called for a rate hold.<\/p>\n
The Reserve Bank went a step too far with its last rate hike and doesn\u2019t understand what Australian households are going through at the moment, according to Compare the Market economic director David Koch.<\/p>\n
Compare the Market revealed the RBA\u2019s three previous hikes have added $4128 a year to the average mortgage holder\u2019s loan repayments.<\/p>\n
RBA WARNED:Cut rates now or face risk<\/a><\/p>\n \u201cThese hikes are in after-tax dollars \u2013 that means you\u2019re going to need to earn roughly $6000 more a year to afford them,\u201d Mr Koch said. <\/p>\n \u201cMost people can\u2019t just pluck that money out of thin air \u2014 it\u2019s going to mean making some serious lifestyle changes, with things like holidays and family outings potentially on the chopping block. <\/p>\n David Koch says another rate hike could damage the economy. Picture: Jono Searle<\/p>\n RATE CLUE:Secret bank move exposed<\/a><\/p>\n \u201cI just don\u2019t think the Reserve Bank understands how tough it is for Australian households at the moment. <\/p>\n \u201cThey\u2019re being crunched \u2014 absolutely crunched \u2014 by the last three interest rate increases, rising petrol prices, and the uncertainty around tax changes, particularly for small business owners. It is essentially forcing everyone into hibernation.\u201d <\/p>\n Mr Koch urged the central bank to leave rates on hold when it meets today and tomorrow, or risk major damage to the economy.<\/p>\n \u201cMy great fear is that these blows are going to spark a big increase in unemployment,\u201d Mr Koch said. <\/p>\n<\/p>\n